The results reflected higher oil prices, which jumped 25% in the quarter. But the industry has struggled to increase production as global oil supplies become more scarce.

Oil-equivalent production fell 9% in the fourth quarter, though it was up 1% for the full year.

Rosenthal said overall production was impacted by entitlement volumes, which reflect payments made to governments and other partners, and other quotas.

The company said earnings from oil exploration and production rose 18% to $8.8 billion in the quarter. But lower volumes and a negative impact from Exxon's production mix reduced earnings by $1.4 billion.

Exxon said earnings from its oil and gas refining operations declined during the quarter, citing tighter profit margins. Earnings from the company's chemicals business also declined.

Rival oil company Chevron (CVX, Fortune 500) reported a 3% decline in quarterly profits last week, as its oil and gas production fell to the lowest levels in years. ConocoPhilips (COP, Fortune 500) also reported declining production volumes, even as profits rose in the quarter.

On Saturday, Exxon announced plans to sell its stake in a Japanese refining business to TonenGeneral Sekiyu for $3.9 billion.